While the broad sentiments prevailing in the market continue to be bearish, commodities and shares were seen rising following a rebound in euro. Recovery in Euro from a four month low after a surprisingly strong German GDP data took the pressure off the market and slightly lifted the sentiments. German economy grew 0.5 per cent in the first quarter against the expectation of 0.1 per cent. Euro Zone GDP data indicated that the region avoided recession though the economy continued to remain fragile. However, the overall sentiments were feeble on deepening worries over euro zone crisis and political uncertainty in Greece. Shortly after the exhilaration wore off the euro began to plummet hitting new recent lows to trade at this time at 1.2724.

Market mood continue to remain skeptical as investors fretted about the possibility of a Greek exit from the Euro zone. Financial markets would be fervently watching out for political events in Europe for further cues. With Europe reeling under both financial and political strain, all eyes are on today’s meet between German Chancellor Angela Merkel and new French president Francois Hollande. US eco data was neutral, with retail sales coming in soft.Read More https://support.fxcc.com/email/technical/16052012/

The Euro fell to quickly in Asian trading to validate the downtrend it also has pushed indicators and oscillators to their maximum reading, Current reading are miscued. We will have to re-evaluate numbers and movement later today. The price action on Monday was negative, and the fact that the 1.29 level finally gave way we showed support had been broken. The 1.29 was the last remnant of the support level in our view. The 1.26 level looks to be the next major support level, and although there will be bounces along the way, the headlines should continue to punish the Euro going forward. However, this pair will more than likely continue to be choppy. We would sell rallies on signs of failure, and a break below the Monday lows.

The current bout of risk aversion this week does not turn into panic; the GBP/USD has a chance to pop up toward the 1.6160 pivot in any short-term bout of risk appetite or stabilization. The next resistance above 1.6160 is a declining trend line which should meet price in the 1.6250-1.6280 area. Technicals all remain bearish with support at 1.6000, though downside set to continue. This morning’s surge has pushed the GBP below the psychological 1.60 price level. Support can be found at 1.58543 and 1.56722

The pair is trading between two moving averages (100 and 200). If the pair breaks 79.707, the pair will decline to 79.070. In terms of technical levels, supports are seen at 79.68/61 and then at 79.43. On the other hand, resistance levels are seen at 80.30/40 and 80.61 Indicators read a strong buy, although RSI has moved to neutral and MACD is in the sell range. MA 10 and 20 both show buy signals.